{"id":3098,"date":"2020-03-27T14:44:42","date_gmt":"2020-03-27T14:44:42","guid":{"rendered":"https:\/\/novaexpressao.pt\/advertising-is-expected-to-fall-by-between-40-and-50-in-traditional-media\/"},"modified":"2026-06-25T15:32:13","modified_gmt":"2026-06-25T15:32:13","slug":"advertising-is-expected-to-fall-by-between-40-and-50-in-traditional-media","status":"publish","type":"post","link":"https:\/\/novaexpressao.pt\/en\/advertising-is-expected-to-fall-by-between-40-and-50-in-traditional-media\/","title":{"rendered":"Advertising is expected to fall by between 40% and 50% in traditional media."},"content":{"rendered":"\t\t
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TV and the press will be the media that suffer most from the economic crisis caused by the pandemic. Media groups are asking the Government for support, but so far in vain.

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Since major digital platforms such as Facebook and Google entered the advertising market, investment in traditional media (television, radio and press) has gone into decline and, consequently, the intermediary role of media agencies has become weakened. Now, with the economic and financial impacts already felt in March due to the Covid-19 pandemic, the fall in advertising will be at least between 40% and 50%, especially in television and the press, according to specialists and sector leaders heard by JE. <\/p>

\u201cThis crisis accentuates a situation that was already difficult, because there is a huge restriction on consumption,\u201d says the former president of the Havas group, Ricardo Monteiro.<\/p>

\u201cI fully accept that in the months of deep quarantine, such as the one we are experiencing, there will be a fall in advertising investment, especially in offline media and print, not far from 40% to 50%,\u201d the specialist estimates. Ricardo Monteiro admits that the calculated fall may be greater in the next two or three months, \u201cdepending on how long the crisis lasts\u201d. <\/p>

To illustrate the calculation, Ricardo Monteiro indicates that \u201call companies\u201d that invest in advertising in the automotive, insurance, real estate, electronic equipment such as mobile phones, and durable consumer goods categories \u201chave already given orders to cancel the campaigns they had under way\u201d. But, for example, food retailers still maintain \u201chigh advertising pressure, insofar as they remain active and continue to provide services\u201d. However, they \u201care not enough to prevent a fall\u201d in advertising investment. <\/p>

The former president of the Havas group explains that the fall exists because \u201cthere is a huge restriction on consumption\u201d, taking into account that, at the current moment the country is going through, the quarantine adopted by the population has taken consumers off the streets and \u201cinvestment in television and traditional media will be suspended\u201d.<\/p>

Pedro Baltazar, president of the media agency Nova Express\u00e3o, has a similar opinion. \u201cWe are talking, at the very least, about falls of 40% to 50% in March, and the outlook for April and May is perhaps even worse, in terms of media agencies and media investment,\u201d the manager tells JE. And he recalls that, in January and February, the market recorded \u201cvery reasonable\u201d growth and was \u201crelatively optimistic\u201d for 2020. But the month of March, he says, \u201cis being violent\u201d. <\/p>

By contrast, the also founder of Nova Express\u00e3o says that, with consumers at home, traditional media audiences \u201chave changed behaviour\u201d. \u201cGeneralist television channels have their audience peak in news, and cable channels have soared, both entertainment and the more news-focused ones, and there is overwhelming consumption in digital,\u201d he details. Will this be a sign of a future recovery in investment? \u201cIn addition to this change in consumption, there will be another, which is the recovery itself. It is a very big unknown,\u201d he says. <\/p>

Alberto Rui Pereira, CEO of IPG Mediabrands Portugal, also tells JE that the evolution of advertising investment until the end of the year \u201cis still an unknown\u201d. It depends on the \u201creal impact\u201d of the crisis. How will that impact be felt? \u201cThe situation will require some adaptations from brands, because there are goods and services that may no longer make sense to communicate as usual,\u201d he replies. <\/p>

The three specialists agree with Government intervention in the media industry, due to the loss of advertising revenue that feeds the industry. The Private Media Platform, which includes the Cofina, Media Capital and Impresa groups, has already asked the Government for help in the current context. To offset the fall in advertising investment, it proposed the \u201cstrong acquisition, by the State, of advertising space, at rate-card prices, in print, digital, radio and television for the mass dissemination of all ongoing campaigns\u201d. However, the appeal has not, to date, received a favourable response. <\/p><\/div>

O Jornal Econ\u00f3mico Article | 27.03.2020<\/strong><\/em><\/span><\/a><\/h6>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

TV and the press will be the media that suffer most from the economic crisis caused by the pandemic. Media groups are asking the Government for support, but so far in vain. 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